In this article, we discuss the 10 recent additions to the stock portfolio of Jim Cramer.
Jim Cramer, the host of Mad Money on CNBC and a former hedge fund manager, has built a cult following over the years in the finance world through a broadcast career that places an emphasis on helping investors build long-term wealth through smart investments. Cramer has been bullish on new technology like crypto and cloud services for a long time, unlike other money managers from his generation that generally scoff at the growth-focused ideas Cramer often espouses. The journalist and investor has a net worth of around $150 million.
Cramer recently launched the CNBC Investor Club, a subscriber-based platform for investors where they can access exclusive behind-the-scenes knowledge about the portfolio management activities of the legendary investor. He has left his position with The Street, a publication he co-founded more than two decades ago, for the club. Cramer made his name in the finance world through a successful stint as a stockbroker at Goldman Sachs, and then as the manager of Cramer Levy Partners, a hedge fund. He subsequently pursued a career in the news industry.
The deal with CNBC is testament to the incredible popularity of Cramer among young investors in particular. News outlets have been transitioning to digital and testing subscriber-based models as they seek to reinvent themselves for the digital age. Cramer, whose hedge fund generated returns of over 20% for fourteen years, per a report in Bloomberg, is one of the few investors whose philosophy resonates with the retail frenzy at the market. The CNBC deal could prove to cement his place in the community even further.
Investors who want to follow the footsteps of Cramer should look into some of the stocks he recently recommended on his show, including General Electric Company (NYSE:GE), Roblox Corporation (NYSE:RBLX), and DexCom, Inc. (NASDAQ:DXCM), among others discussed in detail below.
Our Methodology
These were picked keeping in mind the latest calls that Cramer made on these equities on his Mad Money show aired by news platform CNBC. Analyst ratings and latest news about each stock is discussed in detail below to provide readers with some context for their investment decisions.
The hedge fund sentiment around each stock was calculated using the data of 873 hedge funds tracked by Insider Monkey.
Why pay attention to hedge fund holdings? Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 86 percentage points since March 2017. Between March 2017 and July 2021 our monthly newsletter’s stock picks returned 186.1%, vs. 100.1% for the SPY. Our stock picks outperformed the market by more than 86 percentage points (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
Jim Cramer Stock Portfolio: Recent Additions
10. Innovative Industrial Properties, Inc. (NYSE:IIPR)
Number of Hedge Fund Holders: 15
Innovative Industrial Properties, Inc. (NYSE:IIPR) is a real estate investment trust with core interests in medical-use cannabis facilities. The firm recently beat market estimates on revenue for the third quarter by $1.35 million. It has also announced that it will be purchasing a $51 million property in California and has entered into a long-term lease agreement with Gold Flora, an integrated cannabis firm, for the facility.
Cramer gave Innovative Industrial Properties, Inc. a Buy recommendation during the lightning round of his show. JMP Securities analyst Aaron Hecht has an Outperform rating on the stock with a price target of $300.
At the end of the second quarter of 2021, 15 hedge funds in the database of Insider Monkey held stakes worth $200 million in Innovative Industrial Properties, Inc., up from 13 in the preceding quarter worth $192 million.
Just like General Electric Company, Roblox Corporation, and DexCom, Inc., Innovative Industrial Properties, Inc. is one of the stocks attracting the attention of elite investors.
9. Big 5 Sporting Goods Corporation (NASDAQ:BGFV)
Number of Hedge Fund Holders: 19
Big 5 Sporting Goods Corporation (NASDAQ:BGFV) is a sporting goods retailer. The short interest on the stock has reached a remarkable 40%. However, Cramer recommended it as a Buy during the lightning round of his show since the shares are presently in a short squeeze. In early November, the stock jumped 25% even after the firm posted disappointing earnings results that missed market expectations on earnings per share and revenue.
Steve Miller, the CEO of Big 5 Sporting Goods Corporation, said during the earnings call that the firm was well-positioned to deal with supply chain issues impacting peers and had enough inventory to tackle the upcoming holiday season.
At the end of the second quarter of 2021, 19 hedge funds in the database of Insider Monkey held stakes worth $43 million in Big 5 Sporting Goods Corporation, up from 14 in the preceding quarter worth $27 million.
8. Nokia Corporation (NYSE:NOK)
Number of Hedge Fund Holders: 26
Nokia Corporation (NYSE:NOK) has reinvented itself from a mobile phone manufacturer into a communications and network solutions provider in the past few years. The results are promising as the firm recently beat market estimates on earnings for the third quarter. Morgan Stanley analyst Dominik Olszewski has an Overweight rating on the stock with a price target of EUR 6.5. The firm has recently ventured into the cloud market with the launch of the Nokia MX Industrial Edge.
Nokia Corporation has also been investing heavily in 5G. In October, it was selected by the SoftBank Group in Japan to deploy 5G networks in the country. T-2, a Slovenian firm, has also partnered with Nokia under a five-year deal for 5G equipment supply.
At the end of the second quarter of 2021, 26 hedge funds in the database of Insider Monkey held stakes worth $494 million in Nokia Corporation, up from 21 in the previous quarter worth $352 million.
7. Avnet, Inc. (NASDAQ:AVT)
Number of Hedge Fund Holders: 28
Avnet, Inc. (NASDAQ:AVT) stock was given a Buy rating by Cramer during the Guest Interview round of his show. The company, which operates as a technology solutions provider, has solid fundamentals, recently raising the quarterly dividend payout for the second time in a row to $0.24 per share, up 9% from previous payout of $0.22 per share. The firm primarily markets electronic components for different industries.
On October 29, investment advisory Truist maintained a Hold rating on Avnet, Inc. stock but raised the price target to $45 from $40, underlining “solid” earnings results and improved guidance as some of the reasons behind the target raise.
At the end of the second quarter of 2021, 28 hedge funds in the database of Insider Monkey held stakes worth $817 million in Avnet, Inc., up from 27 the preceding quarter worth $850 million.
6. Tandem Diabetes Care, Inc. (NASDAQ:TNDM)
Number of Hedge Fund Holders: 32
Tandem Diabetes Care, Inc. (NASDAQ:TNDM) is a healthcare equipment manufacturer. The stock stands to gain in the coming months as the regulators in the United States give approvals for launch and development of diabetes devices, a key product of the firm, that had been in limbo due to the urgency of the work related to the coronavirus. The firm recently beat market estimates on earnings per share and revenue in the third quarter.
Raymond James analyst Jayson Bedford recently kept an Outperform rating on Tandem Diabetes Care, Inc. stock and raised the price target to $138 from $120, noting the firm would gain in the post-pandemic economy.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Consonance Capital Management is a leading shareholder in Tandem Diabetes Care, Inc. with 979,226 shares worth more than $95 million.
Alongside General Electric Company, Roblox Corporation, and DexCom, Inc., Tandem Diabetes Care, Inc. is one of the stocks that hedge funds are buying.
In its Q4 2020 investor letter, Alger, an asset management firm, highlighted a few stocks and Tandem Diabetes Care, Inc. (NASDAQ:TNDM) was one of them. Here is what the fund said:
“Tandem Diabetes Care provides the t:slim X2 Insulin Delivery System for treating insulin-dependent diabetes. Tandem offers the smallest durable insulin pump available, and with DexCom CGM (continuous glucose monitoring) integration. Tandem has led the development of more automated control of insulin dosing featuring its BasalHQ and Control-IQ algorithms. The company also sells insulin reservoir cartridges and infusion sets for use with its pumps. Tandem stock underperformed after the company announced third quarter results and 2020 guidance that was somewhat weaker than expected. As a durable insulin pump company, Tandem is more tied to new patient demand, which has been suppressed due to the pandemic. There are also some competitive concerns in 2021. with two other established companies planning to launch new products. However, Tandem also has a series of new products for 2021. including its mobile bolus feature, its new t-sport pump and an enhanced version of its current Control-IQ algorithm. We believe these new products are being underappreciated by investors.”
5. DICK’S Sporting Goods, Inc. (NYSE:DKS)
Number of Hedge Fund Holders: 36
DICK’S Sporting Goods, Inc. is another sporting goods retailer that Cramer has recommended as a Buy. The company has recently signed a partnership with Nike, one of the biggest sports brands in the world, to link the shopping experience of customers of both firms. It had also announced in September that it would be hiring 10,000 additional staff in anticipation of a major boom in sales for the holiday season.
On August 26, Wedbush analyst Seth Basham raised the price target on DICK’S Sporting Goods, Inc. stock to $150 from $125 and maintained an Outperform rating, appreciating the strong earnings of the firm.
Among the hedge funds being tracked by Insider Monkey, Boston-based investment firm Atreides Management is a leading shareholder in DICK’S Sporting Goods, Inc. with 2.8 million shares worth more than $289 million.
4. DoorDash, Inc. (NYSE:DASH)
Number of Hedge Fund Holders: 45
DoorDash, Inc. (NYSE:DASH) is a logistics platform that connects merchants with consumers. The firm recently announced that it had signed an agreement with Dollar General, a variety store firm, to offer on-demand delivery of everyday items at low prices. These deliveries are available at more than 9,000 Dollar General stores and the firm plans to expand them to 1,000 more stores in time for the holiday season.
Cramer gave DoorDash, Inc. a Buy rating during the Guest Interview segment of his show earlier this month. DoorDash recently announced that it would be purchasing food delivery startup Wolt in a deal worth $8 billion as part of a plan to build a global platform for business.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Coatue Management is a leading shareholder in DoorDash, Inc. with 9.6 million shares worth more than $1.7 billion.
3. DexCom, Inc. (NASDAQ:DXCM)
Number of Hedge Fund Holders: 49
DexCom, Inc. is a California-based healthcare equipment firm. The stock recently touched a 52-week high after the firm posted market-beating earnings for the third quarter, smashing analyst expectations on earnings per share and revenue by $0.24 and $33 million respectively. Piper Sandler, Jefferies, Oppenheimer, and Canaccord have raised their price targets on the stock recently to reflect the positive outlook on the firm.
Cramer recommended DexCom, Inc. as a Buy during the lightning round of his show. In the round, Cramer usually fields questions from callers and gives his verdict on a stock quickly before moving to the next call.
At the end of the second quarter of 2021, 49 hedge funds in the database of Insider Monkey held stakes worth $1.63 billion in DexCom, Inc., down from 56 in the previous quarter worth $1.67 billion.
In its Q4 2020 investor letter, Carillon Tower Advisers, an asset management firm, highlighted a few stocks and DexCom, Inc. (NASDAQ:DXCM) was one of them. Here is what the fund said:
“DexCom, a developer and manufacturer of continuous glucose monitors (CGMs) for people with diabetes, saw its share price suffer in the quarter after an announcement from its largest competitor that it had finally developed a CGM that appears to be competitive with Dexcom’s flagship G6 sensor. Until the competitive dynamics are sorted out, we feel as though the firm’s shares could remain range-bound, leading us to exit the position.”
2. Roblox Corporation (NYSE:RBLX)
Number of Hedge Fund Holders: 49
Roblox Corporation was given a Buy rating by Cramer during the Guest Interview part of his show. The company, which owns and runs an online entertainment platform, has seen share price climb over 40% in the past few days on the back of strong earnings results and improved guidance. The company has seen bookings and daily users jump in the past few months, leading to a massive increase in revenue.
BTIG analyst Clark Lampen recently initiated coverage of Roblox Corporation stock with a Buy rating and a price target of $98, appreciating the strong user growth numbers of the company.
At the end of the second quarter of 2021, 49 hedge funds in the database of Insider Monkey held stakes worth $4.9 billion in Roblox Corporation, up from 46 in the previous quarter worth $3.3 billion.
In its Q2 2021 investor letter, Guardian Fund, an asset management firm, highlighted a few stocks and Roblox Corporation (NYSE:RBLX) was one of them. Here is what the fund said:
“The wonder-tale stories of children’s books show us that there are infinite possibilities of stories and worlds. The metaverse, the idea that describes the shared 3D spaces in a virtual universe, is enabling people to create fiction. Over the past six months, we initiated a new investment in Roblox. The firm was founded in 1989 by David Baszucki and Erik Kassel when they programmed a physics lab where students could study how cars would crash.
Today, Roblox has become a leading platform with a mission to build a human co-experience that enables billions of users to play, learn, and build friendships in the metaverse. Recent advances in cloud computing, computing devices, and machine learning, enable the materialization of the metaverse. Take what we have in virtual reality today and fast-forward a few decades. Humans will be able to experience unimaginable things and in a couple of millennia virtual economies are likely to become bigger than the physical trade on planet Earth.
Over the first quarter of 2021, Roblox reported 140% revenue growth, 42.1 million daily active users, and 9.7 billion engaged hours. The opportunity for this platform is massive.”
1. General Electric Company (NYSE:GE)
Number of Hedge Fund Holders: 67
General Electric Company is a diversified industrial company. Cramer recently discussed the stock in detail on his show this week, giving it a Buy rating. The company has recently announced plans to split into three separately traded firms. The three firms would each have a different focus: energy, health, and aviation. The Buy recommendation is a vote of confidence for the move by Cramer.
General Electric Company recently announced that it had obtained a $1.5 billion contract from the US Air Force for propulsion systems. The contract runs till 2031 and includes the development of parts for 29 F110-GE-129 engines for the F-15EX fleet.
At the end of the second quarter of 2021, 67 hedge funds in the database of Insider Monkey held stakes worth $6.08 billion in General Electric Company, down from 68 in the previous quarter worth $6.16 billion.
In its Q1 2021 investor letter, Vulcan Value Partners, an asset management firm, highlighted a few stocks and General Electric Company (NYSE:GE) was one of them. Here is what the fund said:
“General Electric is outperforming our expectations for 2021 as the economic recovery is occurring faster than expected. We are particularly pleased with its free cash flow generation. We are happy to own it in our portfolio.”
You can also take a peek at 10 Companies that Benefit From Crypto Mining and 12 Best Artificial Intelligence Stocks To Invest In Right Now.
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This article is originally published at Insider Monkey.
